Individuals overwhelmed with debt may believe getting out of debt is far from possible. The first step to getting out of debt is to find out who the debt collectors are you owe, and how much you owe them. This can be a stressful and intimidating process but once an individual gets their finances in order they
will feel a sense of relief. Leaving debts unpaid can cause further financial issues. When you fail to pay debt collectors most will eventually sue you for the money you owe. When this happens, you put yourself at risk for wage garnishments, bank levies and repossessions. Below, we will discuss ways to find out who you owe money to and how to get out of debt.
Organize The Debts You Owe to Debt Collectors
The first step to getting your finances in order is to get yourself organized. You will need to find out who you owe money to and how much you owe money to. To get organized you can start by making a spreadsheet with all of your debts. Within the spreadsheet you should write down each collection agency that you owe money too. You will also want to keep track of whether the debt is secured or unsecured debt. Secured debts are debts that are attached to collateral like a mortgage or vehicle loan. An unsecured debt is a debt that is not attached to any collateral like credit cards, personal loans, and medical debt. Within your spreadsheet you should keep track of what debt collectors you owe, the debt collectors contact information and your account information. This information will help to give you a better picture of your financial circumstances.
Gather Credit Reports
To begin the organization process, you can start by pulling a credit report from all three major credit bureaus. Credit reports can provide you with information about what debt collection agency you owe, how much you owe and who you owe.
There are three major credit bureaus where you can find this information: Equifax, Transunion, and Experion. Some of these companies allow individuals to pull their credit report for free once a year. Be sure to pull the reports from all three credit bureaus because they may have different information.
Once you have your credit report, check over it to ensure that it is accurate. If you see any items that don’t look right you may want to do some more digging to ensure no one has stolen your identity.
Review Credit Card Statements
You will next want to go through your credit card statements. Keep a pile of all of your credit card statements so that you know exactly who you owe.
Verify The Debts You Owe to Debt Collectors
If the debts on the credit bureaus don’t look right, then you will want to verify the debts you owe. Our law firm can help you verify your debts by sending a verification letter to confirm the amounts you owe under the FDCPA. When our lawyers send out these letters, the creditors and debt collection companies must confirm that you do owe the debt.
What If You Have Too Much Debt
Owing a lot of debt can be physically and emotionally debilitating. There are options for individuals who are in debt and don’t see a way out.
Filing Bankruptcy
Filing bankruptcy can be a great tool to help individuals get out of debt and start over. Bankruptcy provides individuals a way to eliminate their debt, keep their property ( in most cases), and start over financially. When individuals file bankruptcy it is because they simply can not afford to pay their debt collectors back. Individuals can either enter into a Chapter 7 bankruptcy repayment plan or a Chapter 13 bankruptcy repayment plan. Individuals who may need to file bankruptcy in the near future should contact a bankruptcy lawyer as soon as possible. Karra L. Kingston Esq. offers individuals with a free bankruptcy consultation. Karra has helped numerous individuals eliminate their debt through the bankruptcy process.
Debt Settlement
Debt settlement may also be an option for individuals who have the money to pay back a portion of their debts. Debt settlement can allow individuals to negotiate amount for less than the full amount they owe to their debt collectors. Karra L. Kingston Esq. has worked with numerous debt settlement companies. Karra has reached many favorable settlements for her clients.